I'm new to quant and would like to understand on pricing AUD Plain Vanilla Interest Rate Swap. In post/article/book often explain for long end, we use SWAP RATE that are observed in market. But I'm still confused by:-

  1. How we can calculate/price a 2Y SWAP RATE while we trying to price a 2Y Swap? (This question extends to tenors more than 2Y too)
  2. In some books/article, it mentioned we can replicate IRS by using liquid Government Bonds?
  3. If point (1) is how market works, it means I will need to get those 2Y IRS rates from market (eg: Bloomberg Composite?)

Edit: To add reference I was using when research on how to do price IRS. https://ebrary.net/9371/business_finance/long_end_curve_interest_rate_swaps

Hope questions are clear enough, thank you.

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